China's State Enterprise Reform - An Overseas Perspective
After briefly surveying the current circumstances of China' s state-owned industrial enterprises, this paper offers a series of policy recommendations organized around two objectives: raising the returns to capital and promoting the development of market-supporting institutions. The author argues that public ownership is not the central cause of weak performance in state enterprises, and that policy analysis should focus on raising returns to capital and building market-supporting institutions rather than on privatization.
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